Global Active Pharmaceuticals Ingredients Market - Segmented by Business mode, Synthesis Type, Customer Base, Therapeutic Area, And Geography - Growth, Trends, and Forecast (2018 - 2023)
The global active pharmaceutical ingredients market is expected to register a CAGR of approximately 6.2% during the forecast period (2018 - 2023). Active pharmaceutical ingredients are any substance or combination of substances used in a finished pharmaceutical product with pharmacological activity. The expenditure on research & development, favorable government initiatives, and high technological advancements makes North America the dominant market in the forecast period.
Rising Demand for Generic Drugs
Generic drugs benefit from the patent expiration of innovative drug as it makes them readily available in the market. The demand to produce quality medicines at lower and affordable costs creates a scenario, where the needs for generic drugs increase. It has been estimated that generic drugs save approximately USD 3 billion every week in the United States. In 2013, unbranded generic drugs accounted for more than 80% of the prescription drugs being distributed, primarily due to their low price for patients, payers, and the healthcare system. Therefore, the rise in the demand for generic drugs is expected to be one of the major drivers for the API market.
Other factors playing a vital role for the growth of this market include the rise in the geriatric population with an increase in chronic and lifestyles related disorders, technological advancements in the process of API manufacture, and rising preference for targeted therapy approach in cancer treatment.
Stringent Regulatory Framework
One of the major factors acting as an obstacle is the stringent regulatory framework across several regions. Moreover, the differences in the regulatory requirements in each country have made this an extremely complex market in the recent times. With European Union, several other countries are adopting fierce regulatory requirements and enforcing API inspection system similar to the level of FDA. This is a step towards standardized regulatory framework globally. These factors restrict the growth of companies in many regions and hinder the growth of this market.
Furthermore, other factors such as large capital investment, production cost, as well as variable drug price control policies hamper the growth of this market.
Asia-Pacific Expected to Register a High Growth Rate
The Asia-Pacific is expected to register a high growth rate compared to other regions during the forecast period, owing to the factors such as increasing healthcare expenditures, growing aging population creating a huge patient pool, and rising economies in this region.
Key Developments in the Market